CARICOM Payment System Entered Pilot Phase
The platform enables real-time cross-border transactions in local currencies across 11 Caribbean jurisdictions.
Updated on Oct. 13, 2026 in International Trade
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The CARICOM Payment and Settlement System has launched its pilot phase, allowing businesses and consumers to settle transactions directly in local currencies. This initiative aims to bypass the U.S. dollar for day-to-day payments across 11 Caribbean nations.
Why it matters
The system seeks to bolster intra-CARICOM trade by reducing foreign exchange costs and providing a financial route around the region's shrinking network of correspondent banks. This effort responds to a significant decline in international banking access that has challenged regional liquidity.
Intra-CARICOM goods exports currently account for approximately 8% of the bloc's total goods trade. The new pilot connects 11 Caribbean jurisdictions to facilitate direct currency settlements.
The players
CARICOM
The Caribbean Community is an intergovernmental organization that promotes economic integration and cooperation among its member states.
African Export-Import Bank
A pan-African multilateral trade finance institution that partnered with Caribbean central banks to develop the payment system.
Montran Corp
A financial software company that engineered the connection between national payment systems for the pilot project.
The details
Developed by regional central banks and the African Export-Import Bank, the system uses software built by Montran Corp to connect national payment infrastructures. It is currently being tested for its ability to provide a viable alternative to traditional correspondent banking.
Timeline
Between 2009 and 2024, 40% of correspondent banks withdrew from the Caribbean.
In October 2023, CARICOM central banks adopted the system as their preferred settlement method.
A proof of concept was conducted in February 2025 between The Bahamas and Barbados.
Central bank governors expanded the test in November 2025.
Central bankers are scheduled to meet in November 2026 to discuss the implementation timetable.
Market Dynamics
This project mirrors the architecture of the Pan-African Payment and Settlement System, which currently connects 16 African countries. By aligning with this established framework, Caribbean central banks aim to integrate regional markets into a wider south-south trade network.
Businesses may see reduced transaction costs as the system removes the need for multiple foreign exchange conversions. This shift could simplify operations for firms currently hampered by the withdrawal of correspondent banking services.
The takeaway
The implementation of this system represents a strategic move toward regional financial autonomy in the face of shifting global banking landscapes. Readers should monitor future expansion announcements to gauge potential improvements in cross-border liquidity.
What happens next
Central bankers are set to meet in November 2026 to review the progress of the pilot and discuss the future timetable for the system.
Further reading
For more information on global trade policy, visit the International Trade section.
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